Allowed

Indian Bank v. M/S Gupta Traders and Otheres

DRT23 Jul 2026OA/890/2026

Case brief

AI extract

What is this about?

The Tribunal allowed an application filed by Indian Bank for recovery of dues from M/S Gupta Traders and others. The court quantified the principal amount, adjusted the interest rate to 8% p.a., and directed issuance of a Recovery Certificate and enforcement through sale of assets.

What did the court decide?

Declaration of liability for principal sums with 8% p.a. interest; Recovery Certificate issued; Liberty to enforce through sale of assets.

Indian Bank versus M/S Gupta Traders and Otheres — Banking and Recovery | DRT (2026)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO. 890/2026

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 15.06.2026

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DATE OF DECISION: 23.07.2026

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Indian Bank (erstwhile Allahabad Bank) on the basis of Amalgamation Scheme dated 01.04.2020, a Body Corporate constituted under the Banking Companies (Acquisition and Transfer of Undertaking) Act, 1970, having its Coprorate Office at 254-260, Avvai Shanmugham Salai, Royapettah, Chennai, Tamil Nadu- 600014, having its Zonal Office at Amritsar, Punjab and amongst other Branches, a Branch at Sujanpur through its Branch Manager, Sh. Nitish, duly Constituted and Authorized Signatory

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……..Applicant

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Versus

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M/S Gupta Traders through its Proprietor, Smt. Madhu Bala, C/o House no. B4/257, Ward no. 6, Green Avenue Colony, Near Railway Station, Sujanpur, Pathankot, Punjab- 145023

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Smt. Madhu Bala, W/o Sh. Sunil Kumar Gupta, R/o House no. B4/257, Ward no. 6, Green Avenue Colony, Near Railway Station, Sujanpur, Pathankot, Punjab- 145023

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Sh. Vipul Gupta, S/o Sh. Sunil Kumar Gupta, R/o House no. B4/257, Ward no. 6, Green Avenue Colony, Near Railway Station, Sujanpur, Pathankot, Punjab- 145023

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Sh. Sunil Kumar, S/o Sh. Kedar Nath, R/o House no. B4/257, Ward no. 6, Green Avenue Colony, Near Railway Station, Sujanpur, Pathankot, Punjab- 145023

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….……Defendants

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Advocates:

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Argued by Ms. Deepika Mittal, Advocate for applicant

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None for defendants (already ex-parte vide order dated 21.07.2026)

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FINAL ORDER

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Present Original Application was instituted by the applicant under Section 19 of the Recovery of Debts and Bankruptcy Act, 1993,

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2 OA/890/2026 INDIAN BANK VS. M/S GUPTA TRADERS AND OTHERS

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against the defendants for recovery of Rs. 29,26,658.00 (Rupees Twenty Nine Lacs Twenty Six Thousand Six Hundred Fifty Eight Only). The Original Application has been filed through Sh. Nitish, Branch Manager o f the applicant, who is competent to institute the Original Application vide Authority Letter dated 08.06.2026, which is Annexure A1 to this OA.

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The brief facts of the OA are that the defendant no. 1 through its Proprietor defendant no. 2 approached the applicant for grant of CC Limit of Rs. 2.00 Lacs vide Loan Application dated 26.07.2021, which is Annexure A2 to this OA. Thereafter, defendant no. 1 through its Proprietor defendant no. 2 approached the applicant for enhancement of CC Limit of Rs. 5.00 Lacs vide Loan Application dated 30.11.2022, which is Annexure A8 to this OA. Thereafter, defendant nos. 2 and 3 approached the applicant for grant of Vehicle Loan of Rs. 7.76 Lacs vide Loan Application dated 27.06.2023, which is Annexure A14 to this OA. Thereafter, defendant no. 1 through its Proprietor defendant no. 2 approached the applicant for enhancement of CC Limit to Rs.15.00 Lacs vide Loan Application dated 17.05.2024, which is Annexure A20 to this OA. Thereafter, defendant no. 1 through its Proprietor defendant no. 2 approached the applicant for enhancement of CC Limit to Rs. 22.44 Lacs vide Loan Application dated 10.01.2025, which is Annexure A26 to this OA.

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The applicant sanctioned the CC Limit of Rs. 2.00 Lacs vide Sanction Letter dated 03.08.2021, which is Annexure A3 to this OA and the terms and conditions were duly accepted by the defendants. Defendant no. 2 stood as guarantor. Thereafter, the applicant sanctioned enhancement of CC Limit to Rs. 5.00 Lacs vide Sanction Letter dated 30.11.2022, which is Annexure A9 to this OA. Thereafter, the applicant sanctioned Vehicle Loan of Rs. 7.76 Lacs vide Sanction Letter dated 28.06.2023, which is Annexure A15 to this OA. Defendant no. 4 stood as guarantor. Thereafter, the applicant sanctioned enhancement of CC Limit to Rs. 15.00 Lacs vide Sanction Letter dated 24.05.2024, which is Annexure A21 to this OA. Thereafter, the applicant sanctioned enhancement of CC Limit to

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3 OA/890/2026 INDIAN BANK VS. M/S GUPTA TRADERS AND OTHERS

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Rs.22.44 Lacs vide Sanction Letter dated 01.03.2025, which is Annexure A27 to this OA.

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Defendant no. 1 through its Proprietor defendant no. 2 hypothecated their stocks and entire current assets, both present and future vide Hypothecation of Movables dated 03.08.2021 and Agreements of Hypothecation dated 30.11.2022, 10.06.2024 and 05.03.2025, which are Annexure A5, A11, A23 and A29 to this OA. Defendant nos. 2 and 3 hypothecated their movable asset namely Hyundai Motor India Ltd. i20 Sportz bearing Registration no. PB35AM2093, Chassis no. MALBH512LPM236827 and Engine no. G4LFPV273800 vide RC, which is Annexure A18 to this OA. Documents executed: DP Note, Agreement for OCC and Agreement for Guarantee, all dated 03.08.2021, which are Annexure A4, A6 and A7 to this OA; DP Note, Agreement for OCC and Agreement for Guarantee, all dated 30.11.2022, which are Annexure A10, A12 and A13 to this OA; DP Note, Hypothecation and Agreement of Guarantee, all dated 28.06.2023, which are Annexure A16, A17 and A19 to this OA; DP Note, Agreement for OCC and Agreement for Guarantee, all dated 11.06.2024, which are Annexure A22, A24 and A25 to this OA; DP Note, Agreement for OCC and Agreement for Guarantee, all dated 05.03.2025, which are Annexure A28, A30 and A31 to this OA and Account Statement, which is Annexure A32 to this OA.

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The loan accounts became irregular and were classified as NPA and after adjusting debit and credit entries in loan accounts there was a debit of Rs. 29,26,658.00, which is recoverable and the defendants were served recall notices but they did not repay the outstanding amount, therefore, the applicant requested to accept the application and to issue Recovery Certificate accordingly. 6. The defendants were served summons to appear before this Tribunal but no one appeared on behalf of defendants and they were proceeded ex-parte vide order dated 21.07.2026. 7. In support of the OA, affidavit of Sh. Nitish, Branch Manager, India n Bank h as been filed. 8. Heard ex-parte arguments and perused record.

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4 OA/890/2026 INDIAN BANK VS. M/S GUPTA TRADERS AND OTHERS

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It was argued by learned counsel that in view of the documentary evidence brought on record which had gone unrebutted, the applicant had proved its case.

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From the perusal of all the Annexure A1 to A32 to this OA, it is proved that the defendant no. 1 through its Proprietor defendant no. 2 approached applicant for availing of the loan facility which was granted to them. Defendant no. 2 stood as guarantor. Thereafter, defendant nos. 2 and 3 approached the applicant for availing of the loan facility which was granted to them. Defendant no. 4 stood as guarantor. Defendants had executed all the relevant documents in favour of the bank. The defendants failed to pay back the loans as per terms and conditions of the agreement between the parties. Subsequently, accounts of the defendants were classified as NPA. From the documentary evidence brought on record, it is proved that applicant is entitled to recover a sum of Rs. 23,68,332.00 (Rupees Twenty Three Lacs Sixty Eight Thousand Three Hundred Thirty Two Only) from defendant nos. 1 and 2 and Rs. 5,58,326.00 (Rupees Five Lacs Fifty Eight Thousand Three Hundred Twenty Six Only) from defendant nos. 2 to 4, along with interest, jointly and severally, from the date of filing of the present Original Application till realization of the amount.

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In so far as pendent elite and future rate of interest is concerned, the applicant in relief clause has claimed interest @11.60%p.a. in CC Limit Account and @8.80% p.a. in Vehicle Loan Account with monthly rests from 07.06.2026 till the realization.

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The Tribunal is of the considered opinion that sometimes in appropriate cases the prerogative of mercy is the brightest jewel in the crown of the Judge. Keeping in view the facts and circumstances of the instant case including nature of the hypothecated assets, undertaking of the defendants, quantum of loans and prevalent market rates of interest which have gone drastically downhill in yester years, while exercising the discretion vested in this Tribunal, this Tribunal deems it just and appropriate to grant uniform simple interest @08.00% p.a. in both the loan accounts from the date of filing of the OA till realization of the amount ordered vide this final order. It is ordered accordingly.

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5 OA/890/2026 INDIAN BANK VS. M/S GUPTA TRADERS AND OTHERS

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In the result, the application is allowed declaring that the defendant nos. 1 and 2 are liable to pay to the applicant a total sum of Rs. 23,68,332.00 (Rupees Twenty Three Lacs Sixty Eight Thousand Three Hundred Thirty Two Only) and defendant nos. 2 to 4 are liable to pay to the applicant a total sum of Rs. 5,58,326.00 (Rupees Five Lacs Fifty Eight Thousand Three Hundred Twenty Six Only), jointly and severally, with costs, current and future simple interest @08.00%p.a. in both the loan accounts from the date of filing of OA till the date of realization of the amount. Accordingly, the applicant shall be entitled to recover aforesaid amount from the sale of hypothecated assets of defendant nos. 1 to 3 in execution proceedings if not sold earlier under the provisions of the SARFAESI Act, 2002. If the dues of the applicant still remain unsatisfied, it shall be entitled to recover the same by attachment and sale of personal assets of the defendants. The applicant is at liberty to enforce the claim through due process of law.

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12. Any other application pending stands disposed of. 13. Issue Recovery Certificate accordingly. 14. Parties to appear before Learned Recovery Officer of this Tribunal on 07.08.2026. 15. Copy of this order be given dasti to the applicant and be sent to defendants through registered/speed post and this order be also uploaded on the official website of this Tribunal and record be consigned.

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Pronounced by me in the open Tribunal . Dated: 23.07.2026

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(MRIDULESH KUMAR SINGH)

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Presiding Officer, DRT-III, Chandigarh

Indian Bank v. M/S Gupta Traders and Otheres

Case brief

What is this about?

What did the court decide?

Indian Bank v. M/S Gupta Traders and Otheres

Case brief

What is this about?

What did the court decide?

What the court decided

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